US Allows TikTok Back on Government Devices After Ownership Restructuring

The U.S. Department of Justice has authorized federal employees to reinstall and use TikTok on government-issued devices, ending a nearly four-year prohibition imposed over national security concerns following a major restructuring of the platform's U.S. operations.

According to a Justice Department legal memorandum cited by Reuters, the ban established under a 2022 law is no longer applicable after the completion of a transaction transferring control of TikTok's U.S. user data and domestic operations to a newly established joint venture, TikTok USDS, which became operational in January.

Under the agreement, 80.1% of the joint venture is now owned by U.S. and international investors, while China's ByteDance retains a 19.9% minority stake.

The Justice Department concluded that ByteDance's remaining ownership interest does not present a practical national security risk because operational control, governance and management of U.S. user data have shifted to the new U.S.-based entity.

As part of the restructuring, TikTok's recommendation algorithm for U.S. users has been retrained, tested and updated using American user data, with both the data and algorithm hosted on Oracle's cloud infrastructure. Oracle is also one of the principal investors in the joint venture.

The memorandum allows executive agencies to permit employees to download TikTok on official devices, subject to each agency's cybersecurity policies and operational requirements.

The decision marks a significant change in Washington's approach to TikTok after years of regulatory scrutiny.

Congress passed legislation in 2024 requiring ByteDance to divest TikTok's U.S. operations or face a nationwide ban, a measure later upheld by the U.S. Supreme Court. However, President Donald Trump opted not to enforce the ban after the restructuring agreement was finalized.

Reuters previously reported that the arrangement enables ByteDance to retain an economic interest in TikTok's U.S. business while relinquishing control over American user data, content recommendation systems and operational management to the joint venture.

The agreement establishes a new framework for managing foreign investment in strategically sensitive digital platforms by separating ownership from operational control and data governance.

With roughly 200 million users in the United States, TikTok remains one of the country's largest digital platforms for advertising, e-commerce and content creation. The new structure is intended to balance national security considerations with the continued operation of a major technology business in the U.S. market.